Updated almost 7 years ago on . Most recent reply
Apartments vs Mobile Home Park
Has anyone owned both Apartments and a mobile home park with similar number of units/pads? Can you share your experience and which investment you prefer?
Most Popular Reply
#3 Mobile Home Park Investing Contributor
- Specialist
- Scottsdale, AZ
- 702
- Votes |
- 626
- Posts
#3 Mobile Home Park Investing Contributor
- Specialist
- Scottsdale, AZ
@John Chason I have owned multiple properties of similar size in both asset classes. It really depends on where we are in the RE cycle, what's ahead economically, and what your investment goals are.
Apartments are better suited for a short term value-add flip, have WAAAAAY better options for 3rd party management, and are great investments in a rising market.
MHPs take longer to turn around (you'll need more patient capital), the 3rd party management is terrible, and they are a great investment in any market. Plus they tend to produce better cash flow.
In this market, I prefer MHP, simply because of their ability to perform through a recession. We are so far into the cycle, I would not want to be caught in the middle of an apartment deal when the market turns.